At a glance
- With a leasehold home you own it for a fixed period under a lease; a freehold owner owns the property outright.[1]
- New leases can only charge a peppercorn ground rent, which is effectively nothing.[2][1]
- Big reforms are announced but mostly not in force: a 990-year lease extension, a cap on existing ground rents and a move to commonhold are plans, not law.[3][4][5]
- Always find out the lease length, ground rent, service charge and any major works before you offer.
Rules and figures last checked October 2026.
Freehold, leasehold and commonhold
- Freehold: you own the building and the land it stands on. Most houses are freehold.
- Leasehold: you own the property for a fixed period, set by a lease. Most flats are leasehold.[1]
- Commonhold: a form of freehold ownership designed for flats and shared buildings.[3] The government has consulted on moving towards it.[6]
Shared ownership homes are leasehold too, so read this guide as well as our first-time buyers guide.
What to find out before you offer
| Check | What to know |
|---|---|
| Years left on the lease | GOV.UK says that when 80 years or fewer remain, the cost of extending the lease increases significantly.[1] |
| Ground rent | Leases granted on or after 30 June 2022 can only charge a peppercorn rent.[2][1] For older leases ask what is payable and how it changes. |
| Service charge | The landlord must give a summary of how the charge is calculated and what it funds, and it is a criminal offence not to.[1] |
| Major works | If you would pay more than £250 for planned work, or £100 a year for long-term agreements, the landlord must consult you first.[7][8] |
| Building safety | Check the building’s cladding and fire-safety position, and whether the leaseholder protections apply (below). |
Your conveyancer will request the lease and the landlord’s or managing agent’s information on ground rent, insurance and service charges.[9] Our surveys and searches guide explains the paperwork.
What is law now, and what is only planned
The Leasehold and Freehold Reform Act 2024 became law, but most of it has not been brought into force. Plain-English articles often describe the plans as if they were already rules. As of our check in October 2026:
| Change | Position |
|---|---|
| Peppercorn ground rent on new leases | In force (the 2022 Act).[2] |
| 990-year lease extensions and the end of “marriage value” | Not in force. The government says it needs to fix technical flaws in the 2024 Act first, and is consulting on the valuation rates until 21 October 2026.[3][4] |
| A £250 cap on ground rent for existing leases, falling to a peppercorn after 40 years | Proposed, not law. The government said it would legislate; the consultation closed in August 2026.[5] |
| Ban on new leasehold flats | A proposal: it follows a new commonhold framework, and a consultation ran from January to April 2026.[6] |
| Standardised service charge demands and more transparency | The government says it will bring these in “as quickly as possible”, without a date.[3] |
GOV.UK’s older “Leasehold property” page, last updated in 2015, still describes extending a flat lease by 90 years and does not mention the 2024 Act. For the current government position, the Leasehold toolkit is the better guide.[1][3] Rules change, so ask your conveyancer what applies on the day you buy.
Buying a flat: building safety
- Higher-risk buildings are at least 18 metres tall or have at least seven storeys, with at least two homes.[10]
- Leaseholder protections on building safety costs apply to buildings over 11 metres or with at least five storeys. Costs for non-cladding defects are capped (zero for homes valued under £175,000, or £325,000 in London, and £10,000 or £15,000 in London for most others above that), and building owners with net wealth over £2 million per building cannot pass them on. The protections pass to future buyers of eligible homes.[11]
- EWS1 is not a safety certificate and not a legal requirement. Lenders decide whether they need one.[10][11]
Sources
Every figure and rule above comes from one of these, read in October 2026. The dates are the ones each publisher shows as when the page was last updated.
- [1]Leasehold property (opens in a new tab)GOV.UK · page updated 25 February 2015
- [2]Leasehold Reform (Ground Rent) Act 2022 (opens in a new tab)legislation.gov.uk
- [3]Leasehold toolkit: England (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 20 May 2026
- [4]Leasehold enfranchisement valuation rates (consultation) (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 7 September 2026
- [5]Quid pro quo leases and the ground rent cap (consultation) (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 2 July 2026
- [6]Moving to commonhold and banning leasehold for new flats (consultation) (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 10 February 2026
- [7]Service Charges (Consultation Requirements) (England) Regulations 2003, regulation 6 (opens in a new tab)legislation.gov.uk
- [8]Service charges and other expenses (opens in a new tab)GOV.UK · page updated 25 February 2015
- [9]Leasehold forms (LPE1 and LPE2) (opens in a new tab)The Law Society · page updated 16 July 2026
- [10]Understanding fire risk appraisals of external walls in blocks of flats (opens in a new tab)GOV.UK · page updated 14 September 2026 (published)
- [11]Leaseholder protections on building safety costs in England: frequently asked questions (opens in a new tab)GOV.UK (Ministry of Housing, Communities and Local Government) · page updated 18 December 2023
This is a general guide to buying in England, not legal or financial advice. A conveyancer or solicitor should advise on your own purchase, and a regulated adviser on your mortgage.